Is B Bops currently invoking payment of the advertising fee from franchisees?
B_Bops Franchise · 2025 FDDAnswer from 2025 FDD Document
Company Advertising Program. As noted in Item 6 of this disclosure document, you are required under the terms of the Franchise Agreement to pay the Company a monthly advertising fee equal to three percent (3%) of the gross sales of your Franchise. The Company, however, reserves the right to waive payment of all or part of the advertising fee by you and other franchisees for such period as the Company may in its discretion deem appropriate. Any waiver will be communicated to you, in writing, and may be revoked at such time as the Company, in its sole discretion, deems appropriate. Upon revocation of any waiver, you and the other franchisees will be required to commence payment of the advertising fee. The Company currently plans to waive payment of the advertising fee in whole until such time as the number of franchises sold will provide advertising fee income sufficient to finance the development of advertising and promotional campaigns. During any period that the Company has determined to waive payment of the advertising fee in whole, the Company will not be obligated to develop or produce advertising on behalf of you or the other franchisees. You will, however, be required to continue to observe the independent advertising expenditure discussed below. No assurances can be given that the Company will sell a sufficient number of Franchises to commence operation of the advertising fund.
If and when the Company determines to invoke payment of the advertising fee by you and other franchisees, such fees will be deposited by the Company into a special fund to be administered by the Company and used to finance the development and production of advertising for the B-Bop's Restaurant system. The Company will thereafter be responsible for developing and producing advertising materials to be made available to you and other franchisees for dissemination at your own expense as part of the independent advertising expenditure requirement. All decisions regarding the content, concepts, materials and media utilized in such advertising will be made by the Company in its sole discretion. It is currently anticipated that advertising will be developed for dissemination over radio and television and through print. Since you will be responsible for the expense of disseminating the advertising (including all
media, printing and mailing expenses), the coverage of the advertising presumably will be local in nature to directly benefit your Franchise. It is anticipated that the B-Bop's Restaurants owned by B-Bop's will also be required to contribute to the advertising fund on the same basis and at the same rate as you and the other franchisees.
Source: Item 11 — FRANCHISOR'S ASSISTANCE, ADVERTISING, COMPUTER SYSTEMS AND TRAINING (FDD pages 25–33)
What This Means (2025 FDD)
According to B Bops's 2025 Franchise Disclosure Document, franchisees are required to pay a monthly advertising fee equal to three percent (3%) of their franchise's gross sales. However, B Bops reserves the right to waive this fee at its discretion. Currently, B Bops plans to waive the advertising fee until the number of franchises sold generates sufficient income to finance advertising and promotional campaigns. During any period that B Bops waives the advertising fee, they are not obligated to develop or produce advertising on behalf of franchisees.
Even if B Bops waives the advertising fee, franchisees must still spend a minimum of two percent (2%) of their gross sales on independent advertising each quarter. Franchisees can meet this requirement by using advertising and promotional campaigns provided by B Bops (when available) or by creating their own advertising, which must be approved by B Bops before use.
Prospective franchisees should inquire with B Bops about the current status of the advertising fee and the likelihood of it being reinstated in the near future. Understanding the advertising fee obligations and the requirements for independent advertising expenditures is crucial for budgeting and financial planning.